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Promopharm Issues Profit Warning: H1 2026 Net Income Plunges 74% Despite 9% Revenue Growth
Moroccan pharmaceutical laboratory Promopharm has warned investors of a sharp 74% year-on-year decline in net profit for the first half of 2026, estimating social net income at MAD 6.7 million versus MAD 26.2 million in H1 2025. The drop comes despite a solid 9% revenue increase to MAD 507 million, driven by higher depreciation and financing costs linked to the commissioning of its new injectable products plant in late 2025, alongside rising R&D expenses and a foreign exchange loss. The company confirms the facility is ramping up to boost production capacity. Final accounts will be approved by the board on September 29, with publication set for September 30.
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Promopharm Flags Sharp Profit Decline Amid Strategic Plant Ramp-Up
Casablanca, September 25, 2026 – Moroccan pharmaceutical group Promopharm has issued a formal profit warning for the first half of 2026, alerting shareholders that its social net income is expected to plummet approximately 74% year-over-year to MAD 6.7 million, down from MAD 26.2 million in the comparable 2025 period.
Revenue Resilience Masks Margin Pressure
Despite the earnings contraction, the company's top line showed resilience. Revenue climbed 9% to MAD 507 million by end-June 2026, up from MAD 464 million a year earlier, underscoring sustained commercial momentum across its portfolio.
Key Drivers Behind the Profit Drop
- New Injectable Plant Costs: The commissioning of the new injectable production facility in late 2025 triggered a significant rise in depreciation allowances and financial charges.
- R&D Investment: Elevated research and development spending on new product pipelines weighed on profitability.
- Foreign Exchange Loss: A currency loss recorded during the semester further eroded the bottom line.
Strategic Outlook: Capacity Expansion Underway
Management emphasized that the injectable unit is progressively ramping up operations, aimed at strengthening Promopharm's domestic production capabilities and reducing import dependence. The facility represents a strategic pillar for the group's medium-term growth trajectory.
Next Steps: Board Approval & Publication
These preliminary estimates remain subject to final validation by the Board of Directors, scheduled to meet on September 29, 2026. The official half-year results are slated for release on September 30, 2026.
Investors should monitor the upcoming publication for detailed segment performance and management commentary on the plant's ramp-up timeline and margin recovery expectations.